Problem 1. When John started his freshman year at GWU, his parents decided to create a basket of items that included his spending on major items so they can track his spending and compute inflation rates for the basket. John 1s now a junior (fimshing up his 6" semester at GWU). His parents have the complete data until the end of 5 semester. To save you computation time, | included only three items from the basket: Item 1: Textbook Item 2: Eating at High End Restaurants Item 3: Electronic items/Cell phones/laptop/tablet Quantity of items Average Price of each item (3) t Semester 1 2 3 t Semester 1 2 & 1 Sl 7 3 5 1 51 570 535 5200 3 52 5 5 2 2 52 5100 550 8500 3 53 8 2 3 3 53 S60 SR80 5400 4 54 10 4 0 4 54 580 540 5300 a S5 6 5 I 5 53 $120 $50 5900 6 S6 - - 6 56 - - - Use the mformation provided above, answer (compute) all the questions (CPls) below: a) Laspeyres price index for Semester 4 (54) .5 point b) Paasche Price Index for Semester 4 (54) .5 point ) Fisher for Price Index for Semester 4 (S4) 0.25 point d) Lowe's Price Index for Semester 4 (54) .5 point -- For this, use S3 basket as the base e) Establish a Run chart (Chapter 13) for total textbook price only (identify the center line and upper/control limits using the data provided) --- here, your answer can be based on the total spending on the textbook per semester --- All I want for you 1s to establish a norm (center line and upper/lower control limits based on 6-sigma rule) 1.25 point Problem 2. Using the average price spent on Electronic 1tems/Cell phones/laptop/tablet, provided above, as our time series data, a) Using the moving average of two period forecast the spending on this item for Semesters 6 and 8 (0.5 pt) b) Using simple exponential smoothing method and w=0.60, forecast the spending for this item in Semesters 6 and 8 (1 pt) ) Using double exponential smoothing method and w=0.60, v=0.2, forecast the spending for this item 1n Semesters 6 and 8 (2 pts) Problem 3. Using the average price spent on Electronic items/Cell phones/laptop/tablet, provided above, compute Autocorrelation of lag | and lag 2. (1 pt for each autocorrelation computations hit: use the Pearson correlation formula from Chapter 11) Problem 4. Two forecasting methods have produced the following forecast for the past five months. Actual Forecast | Forecast 2 10 11 9 10 7 10 8 11 i} i} 7 9 8 10. a) Compute all three popular measures of forecast accuracy for the Forecast 1.(0.5 pt) b) Compute all three popular measures of forecast accuracy for the Forecast 2.(0.5 pt) ) Based on the results for MAD (mean absolute deviation) statistics which forecast method do you recommend? (0.5 pt)